Theta Manufacturing Co.Scenario: Cost-Volume-Profit (CVP) AnalysisData:Sales Price per Unit: $100Variable Cost per Unit: $60Fixed Costs: $200,000Requirements:Calculate the contribution margin...
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Accounting
Theta Manufacturing Co.
Scenario: Cost-Volume-Profit (CVP) Analysis
Data:
- Sales Price per Unit: $100
- Variable Cost per Unit: $60
- Fixed Costs: $200,000
Requirements:
- Calculate the contribution margin per unit and contribution margin ratio.
- Determine the breakeven point in units and sales dollars.
- Perform sensitivity analysis for a 10% increase in variable costs.
- Discuss the implications of CVP analysis on Theta Manufacturing Co.'s pricing strategy.
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